Practicing Trust-Based Philanthropy Builds Resilient Communities

In the context of the UK’s evolving philanthropic landscape, trust-based approached are becoming increasingly vital for building resilient communities. The principles align perfectly with the Open and Trusting Grantmaking initiative championed by IVAR (Institute for Voluntary Action Research), which calls for funders to adopt more flexible and equitable practices.  

Understanding Trust-Based Philanthropy In the UK Context 

At its core, trust-based philanthropy addresses power imbalances between foundations and charities, redistributing power to create a more effective and equitable sector ecosystem. This approach resonates with the UK’s growing focus on community-led solutions and local expertise. 

 Core values for UK funders 

While not one-size-fits-all, these values form part of a broader approach to building trust in UK communities. 

• Trusting Partners 
  A healthy and more equitable grantmaking practice-requires trust between voluntary organisations and funders. This means establishing direct lines of communication and actively listening to the communities you serve. 

• Addressing the Power Imbalance 
  There is a significant imbalance of power between grantees and grantmakers in the UK voluntary sector.  The Open and Trusting community recognizes that voluntary organisations “are respected and trusted to know best how to deliver their missions.” This shift enables more equitable partnerships and better outcomes. 

• Streamlining Applications and Reporting 
  UK funders can collect less information by trusting voluntary organisations more. While some information remains essential to ensure your mission is upheld, not all success can be measured with numbers and graphs.- The eight commitments of Open and Trust Grantmaking in the UK emphasise proportionality, asking only relevant questions, and light-touch reporting. 

Trust-Based Practices for UK Funders 

Implementing these values through practical approaches can transform your foundation’s work: 

• Provide Multi-year Funding 
  Long-term unrestricted funding allows UK voluntary organisations to focus on their mission, rather than constantly reapplying for grants. This approach enables organisations to initiate longer-term projects that create lasting change in UK communities. 

• Do Your Homework 
  Grant applications do not need to be exhaustive. Consider researching UK applicants in multiple ways to shorten your applications,-such as reviewing their Charity Commission filings, public websites, and annual reports. . 

• Limit Unnecessary Paperwork 
  Ask yourself if the information you are requesting is essential to your mission. IVAR’s commitment to “Only collect information that we must have to make funding decisions” resonates here. Streamlining the application process reduces burden on both UK charities and grantmakers.  

• Be Transparent and Responsive 
  Trust-based philanthropy requires you to engage voluntary organisations and donors in regular conversations. The Open and Trusting  

• Solicit Feedback (and act on it!) 
  Listen to feedback from UK voluntary organisations about which parts of your grant applications are challenging. This approach embodies the “empathetic” spirit of Open and Trusting grantmaking.  

• Provide Additional Support 
  Financial support is not the only way to support UK voluntary organisations. Connect partners to other non-financial resources that maximise impact. This might include inviting grantees to sector conferences, offering mentorship, or facilitating connections through networks like ACEVO or NCVO.  

Valuing Trust, Partnerships, and Equity in the UK 

The funder/grantee relationship flourishes when built on trust-based values and strengthened by partnership and equity. 

• The best way to serve  UK communities is to listen and learn from them,  understanding their specific needs and demonstrating commitment to meeting those needs. 

• Developing partnerships within UK communities enables foundations to continually learn from their partners through “the power of many.” 

• An equitable process ensures all UK voluntary organisations  have fair access to resources and support. 

Updating Your Grantmaking Process for UK Organisations 

To identify and prioritise updates to your grantmaking process: 

• Analyse the current process 
  When analysing your grantmaking process, ask yourself, “Why do we do it this way?” and “Who does this benefit?” This analysis requires communication with all stakeholders, including UK voluntary organisations, community partners, and internal staff.  

• Prioritise useful fixes 
  Consider using an Impact/Effort Matrix to determine which high impact/low effort fixes can be implemented quickly. This strategy ensures your foundation discusses every problem and potential solution, mirroring the “Act with urgency” commitment.. 

• Research and Implement 
  After implementing the high impact/low effort fixes, researching the available solutions for high impact/high effort issues. Develop an implementation plan that reflects the “adaptable” spirit of Open and Trusting grantmaking.  

Common Challenges and Solutions for UK Funders 

• Consider addressing these common barriers for UK voluntary organisations: Not being able to see the full application before starting it (#1 pain point) 

• Applications that are disproportionately long for the amount of funding offered 

• Technological limitations (lack of auto-save or copy/paste functionality) 

• Excessive reporting requirements for small grants 

Moving Forward Together 

By implementing trust-based values and high impact/low effort changes in your grantmaking practices, your foundation can contribute to a more equitable, resilient voluntary sector across the UK A foundation of trust can help your organisation build stronger communities and more sustainable impact for your cause.